Commons Sense

House of Commons · Ministers' Questions

Topical Questions

Tuesday 3 September 2024 · 22 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 13 Not answered 0

Key points

  • Government have inherited a 22 billion black hole in the public finances.
  • The Government will clamp down on excessive spending and halve Government spending on consultancy, saving 500 million next year.
  • The Chancellor respects the Bank of England's independence and will not undermine it as the previous Government did.

Topics (select to filter)

Questions & Answers

Q1 Gagan Mohindra Con South West Hertfordshire
Economy
Context

The government inherited a £22 billion black hole in the public finances, necessitating tough choices.

Question

If she will make a statement on her departmental responsibilities. The Government have inherited a £22 billion black hole in the public finances, and rectifying the situation requires tough choices. Can she address this?

Answer from Rachel Reeves

This Government have inherited a £22 billion black hole in the public finances, and rectifying the situation requires tough choices. We will clamp down on egregious spending and halve Government spending on consultancy, which will save £500 million next year.

Partly answered

Not addressed: Specific details on how responsibilities will be addressed other than general statements about fiscal discipline.

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Q2 Gagan Mohindra Con South West Hertfordshire
Ukraine Defence
Context

The government scrapped the commitment to spend at least 2.5% of GDP on defence.

Question

Can she tell the House why she has made the political decision to scrap the commitment to spend at least 2.5% of GDP on defence, undermining our support for Ukraine?

Answer from Rachel Reeves

In my first couple of weeks in this job, I had the pleasure of meeting Minister Marchenko from Ukraine, and made a commitment to him to go ahead with the extraordinary revenue acceleration programme. It is important that we work together across the House to support the Ukrainian people against the Russian invasion.

Not addressed: The specific decision regarding defence spending was not addressed; instead focused on general support for Ukraine.

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Q3 Rachael Maskell Labour (Co-op) York Central
Housing Benefits & Welfare
Context

Pensioners are concerned about rising rent costs, loss of cost-of-living payments, and increased energy prices.

Question

In York, the average rent rise of 11.9% exceeded the state pension rise by £380 this year. With the loss of the cost of living payments and winter fuel payments, how will my right hon. Friend protect pensioners above the pension credit threshold to prevent cold, ill health or worse this winter?

Answer from Rachel Reeves

The basic state pension is worth £900 more than it was a year ago, and will go up again in April next year because of the triple lock. We have already written to York council and are working with local authorities across the country to boost take-up of pension credit.

Partly answered

Not addressed: Did not address how pensioners above the pension credit threshold will be specifically protected from financial hardship this winter.

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Q4 Jeremy Hunt Con Godalming and Ash
Standards & Ethics
Context

The Treasury permanent secretary, Ian Corfield, has a history of political donations to the Chancellor.

Question

When the Chancellor was sitting on the Opposition Benches she repeatedly attacked cronyism. Did she tell the Treasury permanent secretary that Ian Corfield had made a donation to her before getting him appointed as a director in the Treasury?

Answer from Rachel Reeves

All Governments appoint people to the civil service. The donation from Ian Corfield was declared over a year ago in the proper way, and we answered all the questions in the right way that the civil service asked when we made that appointment.

Partly answered

Not addressed: Did not address whether the Chancellor told the Treasury about the donation before making the appointment.

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Q5 Jeremy Hunt Con Godalming and Ash
Standards & Ethics
Context

The ministerial code states that Ministers must ensure no conflict of interest arises between public duties and private interests.

Question

The ministerial code states that Ministers must ensure no conflict of interest arises. Why is cronyism wrong under the Conservatives but acceptable under Labour?

Answer from Rachel Reeves

The right hon. Gentleman has a bit of a brass neck criticising this Government, after the appointments and the partying at Downing Street that we saw under the last Conservative Government. We are appointing a covid corruption commissioner to get money back for taxpayers.

Not addressed: Did not address whether cronyism is acceptable under Labour; instead criticized the Conservatives.

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Q6 Paula Barker Lab Liverpool Wavertree
Benefits & Welfare
Context

Age UK reports that around 1 million pensioners just miss out on the winter fuel payment.

Question

Age UK reports there are around 1 million pensioners who just miss out on the winter fuel payment. Can my right hon. Friend tell us specifically whether that pension credit will be backdated?

Answer from Rachel Reeves

Yes, absolutely; pension credit can be backdated by up to three months. We are working closely with Liverpool city council to ensure constituents in Liverpool Wavertree get the support they entitled to.

Answered
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Q7 Greg Smith Con Mid Buckinghamshire
Economy Taxation
Context

The Bank of England will require a further £110 billion of taxpayer subsidy to cover long bond sale losses.

Question

It is estimated that the Bank of England will require a further £110 billion of taxpayer subsidy. Why is the Chancellor clobbering pensioners when she could be challenging the Bank of England?

Answer from Rachel Reeves

Before I became a Member of Parliament, I was an economist at the Bank of England and respect its independence. The previous Government undermined that independence, contributing to economic chaos under the last Conservative Government. This Government will never go down that route.

Not addressed: Did not explain why pensioners are being affected instead of addressing the Bank of England's subsidy; criticized the previous government instead.

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Q8 Chris McDonald Lab Stockton North
Economy Climate
Context

The question arises from the need for investment in green industries in places such as Billingham.

Question

Will the Chancellor of the Exchequer confirm that her decisions are targeted at winning new investment in green industry in places such as Billingham in my constituency?

Answer from Emma Reynolds

I welcome my hon. Friend to this House, because he brings a great deal of expertise on green steel from his previous career. This Government's plan to launch the national wealth fund is precisely to create investment across the country in some very important strategic industries, and that includes decarbonisation of steel and the steel industry.

Partly answered

Not addressed: Did not confirm specific investment for Billingham or mention any decision targeted at green industry there directly.

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Q9 Monica Harding Lib Dem Esher and Walton
Energy Environment
Context

The concern stems from the possibility of a major utility company like Thames Water facing financial difficulties which could have significant economic and governmental impacts.

Question

Does the Chancellor agree that putting Thames Water into special administration and reforming it would protect not just consumers, including my constituents, but the wider economy?

Answer from Darren Jones

Water companies are commercial entities. It would therefore not be appropriate for me to comment on that. It is for the company and its investors to resolve their possible issues.

Not addressed: Did not address the specific suggestion about special administration, focused instead on water companies being commercial entities.

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Q10 Josh Newbury Lab Cannock Chase
Business & Trade
Context

The issue concerns the members of the mineworkers' pension scheme who have seen billions go to successive Governments. With 19 average deaths per day, resolution is urgently needed.

Question

What progress has been made on transferring the Government's share of the MPS investment reserve to scheme members?

Answer from Darren Jones

I championed this issue in the last Parliament as Chair of the Business and Trade Committee. I am pleased to confirm that I am working with colleagues across Government to make progress, and I will update the House further in due course.

Partly answered

Not addressed: Did not specify any concrete progress or timeline for transferring the investment reserve.

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Q11 Lisa Smart Lib Dem Hazel Grove
NHS
Context

The question is prompted by crumbling public infrastructure, specifically Stepping Hill hospital's issues with unsafe buildings and flooded corridors.

Question

How will the Chancellor ensure that hospitals such as Stepping Hill can access the capital investment they need both to repair crumbling buildings and to deliver additional sites where needed?

Answer from Darren Jones

The Government are reviewing the new hospitals programme as part of our spending review. We will undertake a full and comprehensive review while continuing to deliver the most advanced and most urgent hospitals in a realistic timeframe.

Partly answered

Not addressed: Did not provide specific details on how Stepping Hill or other hospitals can access capital investment for repairs or new sites.

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Q12 Ruth Cadbury Lab Brentford and Isleworth
Economy
Context

The context is the letter from a Cabinet Secretary to the former Chancellor indicating that past Government actions contributed significantly to current fiscal issues.

Question

What can the Chancellor learn from this?

Answer from Rachel Reeves

The Conservative party crashed the economy and then wrecked the public finances, leaving us with a £22 billion black hole. The shadow Chancellor is not willing to be straight about the damage he did, and is now trying to pass the buck to independent civil servants. I will always be honest about the public finances and take the tough decisions that we need to fix the foundations of our economy.

Not addressed: Did not address what can be learned from past fiscal challenges, instead criticised the opposition party.

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Q13 Gareth Bacon Con Orpington
Economy
Context

The question arises from the significant difference between July's borrowing figures and OBR's forecast.

Question

Does the Chancellor agree that she could have reduced the national debt had she chosen not to reward her trade union paymasters by spending £10 billion on inflation-busting pay rises?

Answer from Rachel Reeves

As the hon. Gentleman knows, Government borrowing is running at £4.7 billion higher than the OBR forecast because the previous Government made unfunded commitments without any idea of how they were going to be paid for. The previous Government set the mandate for the independent pay review bodies, and we have honoured the recommendations of those bodies to ensure that our armed forces, our police officers, our nurses and our teachers got a pay rise. I think that is the right thing to do. If he does not, I wonder how he justifies that to public sector workers in his constituency.

Not addressed: Did not address whether borrowing could be lower if certain measures were avoided; instead criticised the opposition for its stance on pay rises.

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Q14 Kate Osborne Lab Jarrow and Gateshead East
Employment
Context

Concern arises from reports of trade union members facing disciplinary proceedings at HMRC.

Question

Will the Minister agree to meet them and the PCS about this worrying situation?

Answer from James Murray

As Ministers, we greatly value and respect trade unions and the work of trade union representatives in supporting their members. While it is not appropriate for me to comment on individual cases, I will look into this matter further and respond to my hon. Friend in due course.

Partly answered

Not addressed: Did not confirm a meeting or provide details on the situation.

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Q15 Ashley Fox Con Bridgwater
Benefits & Welfare
Context

The issue is about potential savings from cutting winter fuel payments, as reported.

Question

Can she advise the House what other options she considered for making savings in the Department for Work and Pensions budget before deciding to make this cut?

Answer from Rachel Reeves

The black hole we inherited was £22 billion. We announced in the statement on 29 July £5.5 billion of savings to reduce the size of that black hole, but the hon. Gentleman can see there is still work to be done and we will be setting out further measures in the Budget on 30 October to get a grip of the public finances.

Partly answered

Not addressed: Did not specify other options considered; focused instead on overall budgetary situation.

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Q16 Joe Powell Lab Kensington and Bayswater
Standards & Ethics
Context

Concern about Transparency International report identifying contracts worth £4.1 billion awarded to parties with political connections to the Conservative party.

Question

Can the Chancellor update us on the progress in appointing the covid corruption commissioner and whether they will take evidence from corruption campaigners such as Transparency International?

Answer from Darren Jones

We are appointing a fixed-term covid fraud commissioner through an open competition that is now running as of this morning. The commissioner will make sure everything is done to return money owed to the taxpayer. It will report to the Chancellor, working with the Secretary of State for Health and Social Care, and will report to Parliament in due course.

Partly answered

Not addressed: Did not provide specific update on progress or willingness to accept evidence from campaigners like Transparency International.

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Q17 Martin Vickers Con Brigg and Immingham
Economy Energy Business & Trade
Context

The economic potential of Brigg and Immingham is reliant on renewable energy. The future of the Scunthorpe steelworks is uncertain.

Question

I am concerned about the economic potential of Brigg and Immingham with the uncertainty around the Scunthorpe steelworks. Can you assure that there will be a generous package for workers and investment in the area if redundancies occur?

Answer from Rachel Reeves

The hon. Gentleman speaks about opportunities in renewable energy and carbon capture and storage. The national wealth fund aims to invest in such industries, including steel.

Partly answered

Not addressed: Specific assurance for support packages and local investments was not given

How: Hedging

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Q18 Jayne Kirkham Labour (Co-op) Truro and Falmouth
Economy
Context

Cornwall relies on shared prosperity funds and towns deal money for investment. The deadlines are March 2025 and March 2026.

Question

I welcome the Chancellor's growth plans but we rely on the shared prosperity fund and towns deal money with deadlines of March 2025 and March 2026. Will he consider extending these deadlines by up to 12 months?

Answer from Rachel Reeves

My hon. Friend speaks powerfully about Cornwall's needs, but the spending review will be the appropriate time to consider resources.

Partly answered

Not addressed: Specific timeline or extension commitment was not given

How: Redirecting

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Q19 Dave Doogan SNP Angus and Perthshire Glens
Economy Scotland Benefits & Welfare
Context

Scottish pensioners face issues with low temperatures, old houses, and off-gas-grid situations. The winter fuel payment cut affects them.

Question

The Chancellor knew about Scottish pensioners' challenges before cutting the winter fuel payment and stripping £160 million from Scotland's pensioners. What discussions did she have with new Labour MPs about pushing Scottish pensioners into fuel poverty?

Answer from Rachel Reeves

The Scottish Government mirrors UK decisions on tax powers despite fiscal challenges, given a £22 billion public finance gap.

Not addressed: Discussion about pushing pensioners into fuel poverty was not addressed

How: Changing Subject

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Q20 Shaun Davies Lab Telford
Housing
Context

The Government aims to build 1.5 million homes and there are 1 million homes with council planning consent.

Question

I welcome the plan for 1.5 million homes but there are 1 million homes waiting for unlocking through planning consent. What steps will the Government take?

Answer from Rachel Reeves

We aim to build 1.5 million homes and have already called in four specific housing developments for prioritisation.

Answered
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Q21 Wendy Morton Con Aldridge-Brownhills
Benefits & Welfare
Context

Pensioners in Wendy Morton's constituency are worried about losing their winter fuel payments.

Question

Thousands of pensioners worry about losing their winter fuel payments. Will the right hon. Lady reconsider and reverse her decision?

Answer from Rachel Reeves

The basic state pension has increased by £900, energy bills are lower this year, and 800,000 missed out on pension credit under the previous government.

Partly answered

Not addressed: Reconsideration of winter fuel payment cut was not addressed

How: Redirecting

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Q22 Emily Darlington Lab Milton Keynes Central
Economy Foreign Affairs
Context

Departments are preparing spending review submissions.

Question

As Departments prepare for the spending review, will the Chancellor consider allowing the international development budget to be on the same footing as R&D, looked at over 10 years? Will she meet me to discuss this?

Answer from Darren Jones

The spending review is ongoing. All decisions on ODA spending will be taken in the round as part of this process.

Partly answered

Not addressed: Specific budget consideration timeframe was not addressed

How: Hedging

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